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EU adopts new rules on public procurement

Members of the European Parliament meeting in Strasbourg today (15 January) backed a deal with member states to revise European Union rules on public procurement procedures for local, national and regional authorities in Europe.

The legislation, which was first adopted ten years ago, was subject to intense negotiations between MEPs and member states. The package sets rules for local authorities in their public procurement of services in water, energy, transport and postal services.

The purchase of goods and services by public authorities amounts to almost 20% of EU gross domestic product (GDP).

Many MEPs were unhappy with the thorough revision proposed by the Commission, arguing that public authorities were generally happy with the current rules and only a light revision of the rules were needed. For this reason efforts were made by the Parliament to reduce bureaucratic burden.

Green MEPs welcomed the fact that provisions have been added to ensure more ‘ethical and sustainable’ provision of contracts.

“Up-front price will not be the sole factor to be considered in tendering processes, with life-cycle costs also to be taken into account,” said Heide Ruehle, the German MEP who is the group’s spokesperson on the internal market.

“Quality and ethical brands like Fair Trade will be promoted, with authorities able to insist providers comply with such labels,” she added. “Procurement processes will also be used to ensure the better integration of disabled and disadvantaged groups, including unemployed youth, with provisions to ensure tenders can be reserved for social enterprises.”

As the legislation is adopted, the Commission is meanwhile proposing to strengthen the EU’s leverage in international trade negotiations with the United States by demanding reciprocity of access in the market for provision of goods and services to third countries. The Commission would investigate unfair restrictions on EU services bidding for third country contracts.

The rules on concession contracts are also being updated and aligned with those on public procurement, since some definitions and rules currently vary between member states.